NOVA MEDIA PUBLISHING INC.

CMA CGM Price Cut Shocks Rival Box Carriers Trying To Push Up Rates

14.9.2018

CMA CGM has shocked the market by reducing Asia-North Europe FAK rates at a time when most carriers are trying to drive them up. The French carrier published new FAK rates today of $1,000 for a 20ft container and $1,800 for a 40ft.

Valid from 24 September – “until further notice but not beyond 14 October”– they are down from $1,100 and $2,000, respectively.

For a 40ft high-cube and 40ft reefer, rates are reduced from $2,050 to $1,850.

Meanwhile, container spot rates from Asia to North Europe as recorded by Drewry’s World Container Index (WCI), were down 5% this week at $1,713 per 40ft, while for Mediterranean ports there was a significant dip of 12% to $1,665 per 40ft.

With the outlook for demand after the peak season period looking increasingly bleak, carriers have announced a list of blanked sailings around the early October Chinese Golden Week holiday period.

Meanwhile, the transpacific trade continues to go from strength to strength, as the peak season is intensified by a frantic rush to get containers loaded to the US before the 25% duty hikes likely to be levied on a range of consumer goods.

Carriers are putting on extra loaders to cater for the cargo rush and, with very strong demand, container spot rates have soared.

According to the WCI, at $2,362 per 40ft this week, rates from Asia to the US west coast are 58% higher than a year ago, while for the US east coast, rates are 57% higher at $3,064 per 40ft.

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